Businesses most hit by COVID-19

This is part of the risk-based firm’s series of discussions on the impact of Covid-19 on the Nigerian Economy.

According to SBM intelligence, between Thursday, 16 April 2020 and Sunday, 19 April, it conducted a series of phone interviews with practitioners in various industries to ascertain how their industries were faring as a result of the lockdowns in federal government imposed lockdowns in Abuja, Lagos State, and Ogun State; as well as the state government lockdowns in various other states.

Their questions sought to determine the direction the respondents felt their industries would go after the pandemic was over.

In a look at how the various sectors of the economy will fare, the report noted that bakery, beverages, chemicals, healthcare products, pharmaceuticals, telecommunications sectors face low exposure, compared with restaurant, clothing and textile, education, electricity, agriculture, real estate, hospitality as well as tobacco sectors that it classifies as medium risk.

Automobile, banking and finance, entertainment, leisure oil, and gas as well as trading and transportation were identified as high exposure and are more likely to experience disruption compared with the other sectors.

As the Nigerian economy continues to reel from the impact of the economic lockdowns, businesses across the country are jostling to limit their financial and business exposures. Most organisations have rolled out their business continuity plans designed to ensure that their business operations are not severely impacted. Nevertheless, there will still be winners and losers with varying degrees of exposures to the pandemic.

For businesses considered highly exposed they will have to review their business model and deploy painful reorganizations if they are to remain in business post-Covid-19.

Those on medium risk exposures will also have to adapt their models to reduce the impact while those on low-risk exposure need to consolidate on their operations and also taking full advantage of the opportunities being offered.